GBP/USD continues under pressure around 1.2590-85 as it attempts to protect its weekly gain in the early hours of Monday's Asian session. As a result, the Cable pair is still trading below the 100-bar Exponential Moving Average (EMA). The bearish MACD indications and a downbeat RSI (14) line, which is not oversold, add to the downside …
GBP/USD continues under pressure around 1.2590-85 as it attempts to protect its weekly gain in the early hours of Monday’s Asian session. As a result, the Cable pair is still trading below the 100-bar Exponential Moving Average (EMA).
The bearish MACD indications and a downbeat RSI (14) line, which is not oversold, add to the downside bias.
However, sellers of Pound Sterling require confirmation from an upward-sloping support line from late May, which was at 1.2570 at the time of publication.
The previous monthly low of roughly 1.2550 and the 200-EMA level of 1.2490 also act as negative filters.
If the GBP/USD bears maintain control over 1.2490, a drop into May’s low of about 1.2310 is not out of the question.
A daily close above the 100-EMA level of 1.2625, on the other hand, isn’t enough to entice GBP/USD buyers, as a downward-sloping resistance line from late July, close to the 1.2700 round figure by press time, holds the key for new long holdings. Following that, the June high of about 1.2850 will be the focus.
Aside from the indicated support line, the Bank of England’s (BoE) Monetary Policy Report Hearings will be key to follow for clear directions for GBP/USD pair traders.
Risk disclaimer:
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.
